Self-reported financial well-being was at the lowest levels seen in nearly a decade, and inflation negatively affected most households, according to the latest Federal Reserve report. Economic well-being of American households report released today. The report found that well-being declined markedly in 2022, with 73% of adults at least financially well off, 5 percentage points less than in 2021. The proportion of adults who said they were worse off financially than the previous year rose to 35%, the highest level since the question was first asked in 2014.

More adults experienced spending increases rather than income increases, according to the survey. 40% of adults said their family’s monthly expenses increased in 2022 compared to the previous year, while 33% said their monthly income increased. While some adults saw both their expenses and income increase, 23% of adults said their expenses had increased but their income had not.

Access to financial services from banks and credit unions remained high with 94% of adults having a bank account, according to the survey. The use of non-traditional payment methods remained low, with just 3% of adults using cryptocurrency for financial transactions in 2022 and 12% using buy now, pay later services. One area where the economy showed strength was in the job market, with a third of adults receiving a raise or promotion in 2022 and 13% of adults requesting a raise or promotion. Among those who asked for a raise in 2022, 70% also said they received one.

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